Department for Business, Energy and Industrial Strategy

Pauline Wallace

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government whetherPauline Wallace, Chair of the UK Endorsement Board, was involved in defending PwC against the Financial Reporting Council’s action in respect of PwC’s audit of Mayflower plc; and if so, whether she worked with Mike Ashley as part of that defence.

Lord Callanan: Pauline Wallace was at partner at PwC between 2002 and 2013. The judgement for the tribunal between the Accountancy Investigation and Discipline Board and PwC was provided in 2006 and is available on the FRC’s website. HM Government does not hold information on whether Pauline Wallace had any involvement in the tribunal.

Mike Ashley

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government whetherMike Ashley was a serving member of the Accounting Standards Board when he acted as an expert witness to defend PwC against the Financial Reporting Council’s action in respect of PwC’s audit of Mayflower plc; and if so, (1) what assessment was made of whether this constituted a conflict of interest, and (2) whether he offered to resign from the Board.

Lord Callanan: Mike Ashley was a serving member of the UK Accounting Standards Board, which was a Board of the FRC, when he acted as an expert witness on behalf of PwC during the Tribunal between the Accountancy Investigation and Discipline Board and PwC. The judgement for this case is available on the FRC’s website (and a copy is attached to this response). The Government does not hold information relating to the procedures of the UK Accounting Standards Board which was a Board of the FRC and ceased operating in 2012.Case Judgement copy - HL130 (pdf, 3549.2KB)

Seema Jamil-O'Neill

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government whether the processes for the recruitment of Seema Jamil O’Neil (1) to the staff of Accounting Standards Board,and (2) to the post of Executive Director of the UK Endorsement Board, in 2021 were subject to (a) public advertising, and (b) open competition.

Lord Callanan: The Government does not hold information relating to the recruitment of staff to the UK Accounting Standards Board which was a Board of the FRC and ceased operating in 2012. All permanent posts for staff recruited to the Secretariat of the UK Endorsement Board are subject to public advertising and open competition.

Mike Ashley and Seema Jamil-O'Neill

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government forwhich years did (1) UK Endorsement Board member Mike Ashley act as the KPMG audit partner of HSBC Holdings plc, and (2) UK Endorsement Board Executive Director Seema Jamil O’Neil act as the Senior Manager for the KPMG audit of HSBC Holdings plc.

Lord Callanan: Information from the UK Endorsement Board website explains that Mike Ashley retired as the Partner and the Head of Quality and Risk Management of KPMG Europe LLP in September 2013, having spent about 35 years with the firm and its predecessor firm, Peat Marwick. The Government does not hold information relating to the specifics of Mr Ashley’s role at KPMG. The UK Endorsement Board operates independently from the Government. BEIS is therefore unable to provide information relating to members of staff, including information on job history, supporting its work.

Mike Ashley and Seema Jamil-O'Neill

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government whetherUK Endorsement Board member Mike Ashley, while also a partner of KPMG, had any involvement in the recruitment of Seema Jamil O’Neil from KPMG to the staff of the Accounting Standards Board.

Lord Callanan: The Government does not hold information relating to the recruitment of staff to the UK Accounting Standards Board which was a Board of the FRC and ceased operating in 2012.

Mike Ashley and Seema Jamil-O'Neill

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government forwhich period did (1) Mike Ashley serve as a member of the Accounting Standards Board, and (2) Seema Jamil O’Neil serve as a member of staff of the Accounting Standards Board.

Lord Callanan: Mike Ashley was a member of the UK Accounting Standards Board, which was a Board of the FRC, from 2004 to 2010. BEIS is unable to provide information relating to members of UK Endorsement Board staff, including information on job history, because the UK Endorsement Board operates independently from the Government.

Insurance Companies: Company Accounts

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 16 September 2020 (HL7963) which stated that “calculation of the distributable profits and of a distribution by a public company must be based on the profits of the company as set out in the company’s accounts”, how and when did the discussions of UK Endorsement Board in its adoption of IFRS 17 take that function into account to ensure that accounts of insurance companies are reliable for that function.

Lord Callanan: The calculation of distributable profits must take the profits of the company as set out in the company’s accounts as its starting point. However, directors must also take into account additional factors set out in Part 23 of the Companies Act 2006. For example, for certain insurance companies that are authorised under the Solvency 2 Directive this includes the factors set out in s833A. The effect of these additional factors is to ensure that a company may only make distributions out of profits available for the purpose. The UK Endorsement Board is only required to assess international accounting standards against the criteria in Regulation 7(1) in SI 2019/685.

Company Accounts: Standards

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government why the UK Endorsement Board’s analysis for the endorsement of IFRS 17 made no assessment of whether the need to override the application of a standard would be "extremely rare".

Lord Callanan: The UK Endorsement Board’s Endorsement Criteria Assessment (ECA) for IFRS 17 sets out the results of the UK Endorsement Board’s assessment of the standard against the adoption criteria in SI 2019/685. The ECA states that this assessment has not identified any requirement of IFRS 17 that would prevent individual or consolidated accounts prepared using the standard from giving a true and fair view of the entity’s assets, liabilities, financial position and profit or loss. Following discussion of this matter by the UK Endorsement Board at its meeting on 9 May 2022, the final version of the ECA makes specific reference to the fact that the UK Endorsement Board is satisfied that the circumstances in which the application of IFRS 17 would result in accounts which did not give a true and fair view would be extremely rare.

Company Accounts: Standards

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government why the UK Endorsement Board took no account the two opinions of George Bompas QC in its analysis for the endorsement of IFRS 17 despite linking to those opinions on its website.

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government why the UK Endorsement Board has not commented on (1) the opinion from Mr Todd QC and Mr Rivett, and (2) the other six opinions it placed on its website for the purpose of endorsement of IFRS 17.

Lord Callanan: The UK Endorsement Board has sought advice to clarify the legal position and the approach to be taken when assessing an international accounting standard against the criteria in Regulation 7(1)(a) of SI 2019/685 (the true and fair view criteria). In April 2022, it obtained an Opinion from Counsel on the interpretation of Regulation 7(1)(a). This Opinion was only one piece of a wide range of information that has been considered by the UK Endorsement Board as part of its responsibilities relating to the endorsement and adoption of international accounting standards. The UK Endorsement Board website contains links to prior Counsel opinions, that were obtained by a number of different organisations, in order to provide contextual background for stakeholders.

Company Accounts: Standards

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government why the UK Endorsement Board’s analysis for the endorsement of IFRS 17 made no assessment of the statutory setting inwhich the endorsement criteria in the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019, SI 2019/685, sits, including sections 72, 712 and 836 of the Companies Act 2006.

Lord Callanan: The UK Endorsement Board’s project on adoption of IFRS 17 and its final assessment directly address the adoption criteria and other requirements set out in SI 2019/685. The UK Endorsement Board’s Endorsement Criteria Assessment, available on the UKEB’s website, makes explicit reference to this legislative context. The sections of the Companies Act 2006 referenced in the question are not specifically matters that the UK Endorsement Board is required to address under the terms of Regulation 7 of SI 2019/685.

Company Accounts: Standards

Baroness Bowles of Berkhamsted: To ask Her Majesty's Government why the UK Endorsement Board’s analysis for the endorsement of IFRS 17 made no separate assessment of the requirement in the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019, SI 2019/685, regulation 7(1), which sets out the criteria for the endorsement of an accounting standard.

Lord Callanan: The UK Endorsement Board undertook a significant project to assess IFRS 17 against the adoption criteria set out in Regulation 7(1) of SI 2019/685, that must be met before an international accounting standard may be adopted for use in the UK. Results of its assessment against those criteria are set out in its Endorsement Criteria Assessment, containing sections specifically addressing each of the Regulation 7(1) adoption criteria. The Endorsement Criteria Assessment can be found on the UKEB’s website.

Department of Health and Social Care

Cosmetic Surgery: Regulation

Baroness Finlay of Llandaff: To ask Her Majesty's Government what plans they have to implement a credential for the regulation of cosmetic surgery; and what progress they have made with regard to implementing any such plans.

Baroness Finlay of Llandaff: To ask Her Majesty's Government what steps they are taking to (1) raise the standards, and (2) improve the safety, of the cosmetic surgery industry.

Lord Kamall: The General Medical Council and the Royal College of Surgeons are developing a cosmetic surgery credential. The credential will set out the expectations of doctors working in this area of practice and strengthen regulation and patient protection by ensuring surgeons have appropriate training, qualifications and experience.The cosmetic surgery credential will not be mandatory. However, we expect the cosmetic surgery industry to embrace the credential as a way of demonstrating that doctors have the relevant skills and knowledge to deliver safe care to patients. We anticipate the cosmetic surgery credential will be completed in 2023.

Down Syndrome Act 2022

Lord Wigley: To ask Her Majesty's Government how much money they have allocated to meet the financial implications of the Down Syndrome Act 2022.

Lord Kamall: No specific funding has been allocated. The Down Syndrome Act 2022 requires the Secretary of State for Health and Social Care to issue guidance to relevant authorities on the appropriate actions to meet the needs of people with Down Syndrome in the exercise of the relevant functions. The guidance will be developed and published in due course. An assessment of any funding requirements will also be completed alongside the development of the guidance.

Coronavirus: Screening

Lord Hunt of Kings Heath: To ask Her Majesty's Government what plans they have to work with the diagnostics industry to (1) solicit, and (2) implement, feedback on the (a) efficiency, and (b) transparency, of regulatory bodies as part of ongoing reviews of the Coronavirus Test Device Approvals process.

Lord Kamall: The UK Health Security Agency regularly engages with the diagnostics industry in the United Kingdom and others on the Coronavirus Test Device Approvals (CTDA) process. We will review the CTDA process due by the end of the year and consider its efficiency and transparency.

Immunosuppression: Coronavirus

Lord Mendelsohn: To ask Her Majesty's Government what is the likelihood of an immunocompromised patient infected with COVID-19 being (1) hospitalised, and (2) dying, versus individuals who are not immunocompromised.

Lord Kamall: This information is not held centrally.

National Institute for Health and Care Excellence

Lord Hunt of Kings Heath: To ask Her Majesty's Government whether they plan topublish the names of the organisations which took part in the early engagement programme with the National Institute for Health and Care Excellence before the publication of its new methods and processes for its health technology evaluation programme.

Lord Kamall: While there was no specific early engagement programme, the National Institute for Health and Care Excellence’s (NICE) recent review of its methods and processes for health technology evaluation was overseen by a steering group and working group. The organisations which participated in these groups are as follows:Centre for Health Technology Evaluation, NICE;Centre for Guidelines, NICE;Centre for Health Economics, University of York;NHS England and NHS Improvement;The Office for Life Sciences;The Department of Health and Social Care;NICE appraisal committee;British In Vitro Diagnostics Association;The Association of the British Pharmaceuticals Industry;The Psoriasis and Psoriatic Arthritis Alliance;The British Medical Journal Technology Assessment Group;The Ethical Medicines Industry Group;The BioIndustry Association;Genetic Alliance;ReCor Medical UK, Association of British HealthTech Industries;School of Health and Related Research, the University of Sheffield;Alzheimer's Research UK.